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Tag: investment loss

What Effect Do Stock Losses Have on Your Taxes?

Nashua, NH Taxpayer Has Questions

Capital losses from the sale of stock, mutual funds, and other investments can help to reduce your tax bill.  If you had any capital gains over the year, this loss will first be used to offset the taxes paid on these gains.  For those years where you are still at a capital loss, this deduction can reduce taxes on other income, including salary and interest. This excess deduction is capped at $3,000 per year.  Any more than that amount can be carried over into subsequent years as a future tax deduction. 

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